Key Facts

• The Subsidy Control Bill is being considered by the Public Bill Committee.
• Professor Steve Fothergill from Sheffield Hallam University and Dr Serafin Pazos-Vidal from the Convention of Scottish Local Authorities are providing evidence.
• The witnesses will introduce themselves before making a brief statement.
• Regional selective assistance scheme has been running in Scotland for many years, awarding around £20 million annually through approximately 60 awards.
• Assisted area maps under EU state aid rules were not imposed on the UK; the UK had such maps before joining the EU.
• The bill does not explicitly rule out or mandate an assisted area map, leaving significant discretion to future ministers.
• The Subsidy Control Bill aims to create home-grown systems of assisted areas.
• Clause 79 of the Bill allows the Secretary of State to issue statutory guidance after consultation.
• In March 2018, the UK Government committed to engaging with local government when designing new rules.
• Dr Pazos-Vidal mentioned the importance of developing an assisted areas map to complement the UK's shared prosperity fund.
• Professor Fothergill noted that under EU rules, only a quarter of the entire UK population was covered by assisted area maps.
• The Subsidy Control Bill is seen as an opportunity to provide more flexibility in subsidy allocation and address economic disparities.
• The Bill aims to establish principles for the UK subsidy control regime.
• Secondary legislation will provide further details not covered in the primary Bill.
• Devolved nations and local authorities may lack clarity on permissible actions under current provisions.
• Virendra Sharma is calling several MPs to ask questions in sequence.
• Schedule 1, principle F of the Subsidy Control Bill aims to minimise negative effects on competition or investment while achieving policy objectives.
• Aid intensity ceilings under old EU rules ranged from 10% to 50%, depending on the type of investment and the area's classification.
• The current lower threshold has been recently raised from 10% to 15%.
• The Subsidy Control Bill includes a de minimis threshold of £315,000 over three years for small-scale financial support.
• Local authorities welcome an increase in the de minimis threshold to reduce administrative burdens.
• The Subsidy Control Bill aims to create a system that fits with recommendations from the Institute for Government.
• Professor Rickard recommends further increasing transparency to ensure compliance with principles laid out in the Bill.
• There is currently a £315,000 de minimis threshold and a higher £500,000 threshold for reporting subsidies.
• A de minimis threshold of £315,000 is discussed as reasonable.
• Transparency reporting could be lowered to around the EU level or a bit lower, approximately £175,000.
• The speaker suggests shortening the time for reporting and increasing the time for challenging subsidies.
• There is a 28-day window for interested parties to appeal against a subsidy scheme.
• Once the challenge period ends, there is no opportunity to review or change the approval.
• Professor Rickard suggests expanding the definition of 'interested parties' to include entities like employees and trade unions.
• The Subsidy Control Bill is being discussed during a Public Bill Committee sitting.
• Concerns are raised about self-certification and challenges in Clause 71(3).
• Suggestions include extending challenge timeframes and clarifying interested party definitions.
• The CMA currently has a reactive role in reviewing subsidies before they are offered.
• There is a 28-day period for potential interested parties to express concerns about a subsidy.
• Tax measures have a longer reporting cycle of up to two years due to the TCA (Trade and Cooperation Agreement).
• Recipients, not public bodies, are responsible for monitoring cumulative subsidies exceeding de minimis thresholds.
• Estimates suggest $80 billion is spent annually in the US on state-level subsidy wars.
• The proposed lower reporting threshold for subsidies ranges from £100,000 to £210,000.
• Transparency mechanisms include declarations for non-commercial use of sensitive data.
• The session ends at 10:31 AM.
• The Committee will reconvene at 2 PM that afternoon in the Boothroyd Room.
• The Chair adjourned the Committee without Question put (Standing Order No. 88).
• The Committee is scheduled to reconvene on the same day at Two o'clock.